Nike is just ‘tip of the iceberg’ of companies ditching Amazon
Nike’s decision to stop selling merchandise to Amazon is the start of brands opting to go directly to consumers, says internet entrepreneur Tim Armstrong.
“The direct-to-consumer movement will be the replacement for the retail issues and commerce issues that are going on because of the platforms,” Tim Armstrong told CNBC on Friday.
“If they have the option to go direct, they are going to go direct,” said Armstrong, former CEO of AOL and ex-Google ad chief. Brands are often fearful that by partnering with Amazon they will lose control over how they’re represented on the site.
Nike confirmed to CNBC that a pilot program, launched in 2017, to sell a limited product assortment to Amazon, in exchange for stricter policing of the Nike brand on the platform, will end. Nike said it’s shifting focus to its direct-to-consumer business.
Direct-to-consumer is “another megatrend starting,” said Armstrong, whose company invests in brands that sell directly to consumers.
Armstrong’s optimism toward the growing industry echoes sentiments from analysts, who said this week that they believe other retailers will follow suit after Nike’s announcement.
More Amazon news
China Coronavirus Update
Chinese companies start to get back to work Monday is the first official day back to work in China after the authorities extended the holidays in attempt to limit the spread of the coronavirus. In some provinces factories gradually start to resume...
China Extends New Year Holidays to Fight Coronavirus
Coronavirus Impact on Shipping from China China has announced the extension of New Year holidays until February 10-14 in order to stop the disease outbreak. In Hubei province businesses are not to reopen until at least February 14, according to People’s...
President Trump Delivers A Serious Blow to Amazon
Trump administration cracks down on counterfeitsPresident Trump has shifted liability for counterfeits from third parties to platforms, and that's disastrous news for AmazonLaw enforcement officials will immediately start to identify cases where...